Your Right to Know

Perry Township’s effort to impose an income tax on some workers in the township could face a
legal challenge.

The township filed with the Franklin County Board of Elections yesterday to put a 2.5 percent
tax on the May 6 ballot. The tax would be assessed on employees of more than two dozen businesses
in designated “joint economic-development zones.”

Joint economic-development zones allow townships to use the taxing authority of a municipality —
Worthington in Perry Township’s case — to levy the tax. Townships have no such authority on their
own.

The same tax would be assessed on the net profits of corporations in the zones. One business
owner said he is talking to lawyers about ways to keep the measure off the ballot.

“This is turning out to be nothing but a money grab,” said Martin Savko Sr., chairman of Nikolas
Savko and Sons Inc. Savko said he’s fighting for his 25 employees who, he thinks, would have to pay
the income tax and “already are taxed to death."

As for his construction company, other than a “spectacular police department, we get nothing out
of the township and need nothing.” He said the company pays the township $99,000 in property taxes
and would pay a little more to help the township out.

One of Savko’s attorneys, Gordon P. Shuler, said he is checking into whether the township
followed the law in setting up the income tax.

“He has every right to go through that process,” township Trustee Chet Chaney said of Savko.

If the measure can’t be kept off the ballot, Savko said he will consider annexing to Columbus,
which could provide more services for its 2.5 percent tax.

If voters approve the tax, workers will see it deducted from their paychecks starting this
summer, Chaney said. About 10 percent of workers affected live in the township, he said.

Township officials have said the tax money will be used to improve the Rt. 161 corridor and
water supplies to businesses, to build multiuse pathways and to fix drainage problems in
Worthington Hills.

Worthington would collect the tax and distribute it to an appointed joint
economic-development-zone board. The city and board would split 4 percent off the top of the
$292,500 raised each year for administration and other fees. Of the rest, Perry Township would
receive 70 percent, or about $196,000 a year; Worthington would get 20 percent, or about $56,000,
and the joint economic-development-zone board, 10 percent, or about $28,000, Harris said.